Honeywell Profit, Revenue Better Than Expected
Honeywell posted earnings and revenue a shade above expectations as the diversified manufacturer grew despite global economic weakness.
The Morris Township, N.J.-based company showed a $1.10 a share profit for the quarter on revenue of $9.58 billion. Wall Street had expected Honeywell to report earnings excluding items of $1.09 a share on $9.51 billion in revenue, according to Thomson Reuters consensus estimates.
Shares rose in premarket trading.
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Sales fell 1 percent from the same period a year earlier in aerospace and transportation but grew in performance materials and technology.
Overall profit margins rose to 15.6 percent of sales from 15.1 percent a year earlier as Chief Executive Officer Dave Cote has been pushing to boost productivity across the company's four divisions, including consolidating businesses into fewer locations.
The company's performance materials unit, whose products include chemicals and equipment used in oil and gas production, notched the strongest sales growth in the quarter, up 8 percent. At the transportation systems unit, which makes products that include automobile turbochargers, sales fell 11 percent, reflecting weak European demand.
The company confirmed its full-year profit forecast of $4.75 to $4.95 per share and said it expected earnings to rise 6 percent to 11 percent in the first quarter.
Honeywell shares have risen about 18.5 percent over the past year, outpacing the 13.6 percent rise of the broad Standard & Poor's 500 index.
-Reuters contributed to this report.